GoGold Resources Reports Record Quarterly Operating Cash Flow

• Record quarterly operating cash flow of $21.2 million for the three months ended March 31, 2026
• Revenue of $30.3 million from the sale of 383,695 silver equivalent ounces at an average realised price of $79.04 per ounce
• Net income of $16.4 million for the quarter; $29.7 million for the first half of FY2026
• Cash on hand of $262.2 million, exceeding the $227 million estimated initial capital cost for Los Ricos South
• Parral Tailings mine generated free cash flow of $14.6 million, completing its twelfth consecutive year of operations

GoGold Resources (TSX: GGD / OTCQX: GLGDF) is a Canadian-based silver and gold producer headquartered in Halifax, Nova Scotia, with all operations and projects located in Mexico. The company operates the Parral Tailings mine in the state of Chihuahua, which reprocesses historic mining waste material to extract silver, gold, copper, and zinc. GoGold also holds two development and exploration projects in the state of Jalisco: Los Ricos South, which has a completed feasibility study, and Los Ricos North, currently at the exploration stage.

Record Q2 FY2026 Operating Cash Flow and Financial Performance

GoGold delivered record quarterly financial results for the three months ended March 31, 2026, generating operating cash flow of $21.2 million on revenue of $30.3 million. Net income for the quarter reached $16.4 million, or $0.038 per share, compared to $3.4 million, or $0.010 per share, in the same quarter of FY2025.

Revenue was supported by a significantly higher realised silver price. GoGold sold 383,695 silver equivalent ounces (SEO) at an average of $79.04 per ounce during the quarter, compared to $31.70 per ounce in Q2 FY2025. SEO is a standard industry measure that converts all metals produced, in this case gold, copper, and zinc alongside silver, into a single silver-equivalent figure using prevailing market price ratios, allowing output across different metals to be tracked in one number.

For the first half of FY2026, the company generated $30.9 million in operating cash flow on revenue of $61.4 million and net income of $29.7 million. This compares to $13.0 million in operating cash flow and $36.7 million in revenue for the same period in FY2025.

Parral Tailings Mine Production and Operational Performance

The Parral Tailings mine in Chihuahua produced 394,605 SEO during Q2 FY2026, comprising 230,680 silver ounces, 2,549 gold ounces, 84 tonnes of copper, and 93 tonnes of zinc. The mine stacked 361,242 tonnes of material onto its leach pad during the quarter and generated free cash flow of $14.6 million. Free cash flow, in this context, refers to the cash remaining from revenue after operating costs and sustaining capital expenditures have been covered.

The mine's all-in sustaining cost (AISC) came in at $30.30 per SEO for the quarter. AISC is a widely used mining industry measure that captures all operating costs plus the capital required to maintain current production levels. With silver realised at $79.04 per ounce, the margin between the average realised price and AISC per ounce was approximately $48.74 during the quarter.

President and Chief Executive Officer, Brad Langille, said: 

"Parral continues to provide excellent results, propelling the Company to record operating cash flows of $21.2 million. As we complete our twelfth year at Parral, it continues to operate strongly and is producing record cash flows for us." 

Parral is a tailings operation, meaning it reprocesses leftover material from previous mining activity rather than extracting fresh rock.

Strong Cash Position and Los Ricos South Development Financing

GoGold ended Q2 FY2026 with $262.2 million in cash, which exceeds the $227 million initial capital expenditure estimated in the feasibility study for its Los Ricos South project in Jalisco, Mexico. The company noted that its cash position, combined with ongoing cash flow from Parral, already surpasses this estimated construction cost.

President and Chief Executive Officer, Brad Langille, said: 

"We ended the quarter with $262 million in cash, which along with our cash flow from Parral exceeds the initial capital expenditure of $227 million for Los Ricos South based on the feasibility study. With the logistics and detailed engineering well advanced, once we have our permit in hand for Los Ricos South and our excellent balance sheet we are ready to go." 

The receipt of the relevant Mexican operating permit for Los Ricos South remains the outstanding step before construction can begin.

Los Ricos South is intended to be a conventional silver and gold mine and is expected to represent a significant increase in production scale relative to the Parral operation. Detailed engineering and logistics planning are already well advanced, according to the company. GoGold also holds Los Ricos North, a second project in Jalisco currently at the exploration stage.

Looking Ahead

GoGold's Q2 FY2026 results mark the company's strongest quarterly financial performance on record. With $262.2 million in cash and detailed engineering underway, the primary near-term milestone is the receipt of the Los Ricos South operating permit. Continued production at Parral and the advancement of Los Ricos South through the permitting process will be the key developments to follow in the periods ahead.

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